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A Sample of 33 Companies Was Randomly Selected and Data

Question 11

Multiple Choice

A sample of 33 companies was randomly selected and data collected on the average annual bonus, turnover rate (%) , and trust index (measured on a scale of 0 - 100) .The regression coefficient associated with Average Bonus was found to be
-0) 0007216.The correct interpretation of this value is ________________________ .


A) holding the trust index constant, increasing the average annual bonus by $100 will decrease the turnover rate by 7.2%
B) for companies that have the same score on the trust index, increasing the average annual bonus by $100 is associated with a decrease in turnover rate of 7.2%, on average
C) for companies that have the same score on the trust index, increasing the average annual bonus by $100 is associated with an increase in turnover rate of 7.2%, on average
D) an increase of $100 in the average annual bonus decreases the turnover rate by 7.2%
E) None of the above.

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